Year-on-year, cost increased for: food and non-alcoholic beverages (+0.4 percent from +0.2 percent in the preceding quarter); alcohol and tobacco (+6.0 percent from +5.0 percent); clothing (+0.5 percent from -1.0 percent); furnishing, household equipment and services (+1.9 percent from +1.8 percent); health (+5.3 percent from +4.8 percent) and recreation and culture (+1.7 percent from +1.1 percent). In contrast, cost declined for transport (-1.4 percent from -2.2 percent) and communication (-6.3 percent from -4.1 percent). While prices remained unchanged for education (+5.5 percent), cost moderated for housing (+2.2 percent from +2.7 percent) and insurance and financial services (+1.8 percent from +2.0 percent).
RBA Trimmed Mean CPI rose 2.1 percent year-on-year in the fourth quarter of 2015, the same pace as in the previous quarter and in line with market consensus. Quarter-on-quarter, the index increased 0.6 percent, up from 0.3 percent in the September quarter. RBA Weighted Mean CPI rose 1.9 percent year-on-year in the December quarter of 2015, up from a downwardly revised 2.1 percent. Quarter-on-quarter, the index rose 0.5 percent from an upwardly revised 0.4 percent. For 2016, Australia's central bank targets core inflation of between 2.0 percent to 3.0 percent on average.
Quarter-on-quarter, consumer prices rose 0.4 percent, slowing from 0.5 percent in the September quarter. The most significant price rises this quarter were tobacco (+7.4 percent), domestic holiday travel and accommodation (+5.9 percent) and international holiday travel and accommodation (+2.4 percent). The most significant offsetting price falls this quarter are automotive fuel (-5.7 percent), telecommunication equipment and services (-2.4 percent) and fruit (-2.6 percent).